Positive Signs As Multiple Insiders Buy Investar Holding Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Investar Holding Corporation's (NASDAQ:ISTR) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Investar Holding
The Last 12 Months Of Insider Transactions At Investar Holding
Over the last year, we can see that the biggest insider purchase was by Chairman of the Board William Hidalgo for US$114k worth of shares, at about US$11.42 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$10.35). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 26.89k shares for US$322k. But insiders sold 3.08k shares worth US$62k. In total, Investar Holding insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Investar Holding Insiders Bought Stock Recently
It's good to see that Investar Holding insiders have made notable investments in the company's shares. Overall, three insiders shelled out US$72k for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Investar Holding insiders own about US$7.4m worth of shares (which is 7.3% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Investar Holding Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Investar Holding stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Investar Holding is showing 2 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
